The number of global air passengers decreased by 11.1 per cent which showed its effect on the balance sheets of some airlines. German carrier Lufthansa suffered a 10.3 per cent loss in its global revenue during the first three months of 2009 in comparison to a year ago.
Lufthansa is going to shut down its offices in Chennai, Bangalore, Kolkata and Hyderabad from next month to reshuffle its sales offices.
The airline is operating 54 flights per week from seven destinations in India. These operations showed the optimistic nature of the airline. According to the airline, “We have been operating in India for 50 years. It is an essential core market. We are not going to change our current summer schedule because of the slowdown.”
Stephan Gemkow, chief financial officer for Lufthansa said, “The current crisis is putting a strain on our profits. But we are developing our core business through the expansion of passenger airline group and strengthening of our alliances and partnerships to emerge from the current financial climate stronger than ever.” The decline in passenger and freight demands decreased the margins of the airline.
The aviation industry is facing hard time to survive in the recent scenario. According to International Air Transport Association’s (IATA) data, European airlines witnessed an 11.6 per cent fall in March. For Asia Pacific and North American carriers, the drop is even sharper at 14.5 per cent and 13.4 per cent, respectively. |
